Starwood to Expand European Portfolio
Starwood Hotels & Resorts Worldwide plans to increase its European hotel portfolio by almost 40 percent in the next five years.
The U.S.-based hotel chain announced plans to open more than 60 new hotels and resorts across Europe by 2020. Starwood will open nine new hotels in Europe this year, concentrating on the fast-growing markets such as Turkey, Russia and the Commonwealth of Independent States.
"We are seeing rising demand for development in both established and rapidly growing markets across Europe," Simon Turner, president of Global Development for Starwood Hotels & Resorts, said in the announcement. "The surge in infrastructure development in markets such as Turkey and Russia and the success of our mid-market brands across the continent have created favorable conditions for the expansion of all of our brands across Europe over the next several years."
Starwood will open four new properties in Turkey this year, including The St. Regis Istanbul, following the opening of three new hotels in Turkey in 2013. The company currently operates 10 hotels in Turkey under five or its nine brands.
Starwood plans to triple its portfolio in Russia and the CIS countries in the next three years, with 12 new hotels.
Last year, Starwood signed 12 new hotel management and franchise agreements in Europe, staying in line with the deal signing pace in 2007. It also opened seven hotels in Europe last year, adding about 1,200 rooms in five countries, with 80 percent of its growth in developing markets, according to the announcement.
Last month, the company announced 2013 marked the fourth consecutive year of increased signings
worldwide and the highest number of deals signed since 2007.
The company operates approximately 50 hotels under the St. Regis, W Hotels and Luxury Collection brands. It has five new luxury hotels under development in Europe.
"The expansion of this brand in Europe reflects demand across both established city and resort destinations," Michael Wale, president, Starwood Hotels & Resorts, Europe, Africa and Middle East, said in the announcement. "With the large landscape of independent luxury hotels in Europe, many of which are seeking a strong brand and global selling power, we expect some well-established conversion opportunities in key European cities this year."